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tv   Bloomberg Markets Balance of Power  Bloomberg  December 8, 2017 1:00pm-2:00pm EST

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we're watching at this hour. kicking the can down the road. congress puts off any cut questions on the budget until just before christmas. getting the tax bill on the president's desk for the holidays. getting the full employment. the u.s. as another 228,000 jobs in november think you see unemployment rate at 4.1% and gross ranges to tens of 1%. where is the range -- 2/10 of 1%t? the eu could have more talks the critical issues of transition and trade. we will look into the next that's right it. -- steps for brexit. ♪ shery: after passing the senate last night, the short-term spending deal to fund the federal government through
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december 22 was sent to the president's desk. president trump just signed the bill after yesterday's praising congress with congressional leaders. many republicans worry the short-term thanks could give the democrats leverage. we are on capitol hill with the latest. is this because the spending bill to get all next up with the tax reform bill? sahil: it is unlikely. they have to operate separately. he can't but the spending bill the reconciliation because he goes through different process. the debate will get mixed up with the tax bill now that republicans have cleared some space to work on that while giving themselves just two more weeks to negotiate a government funding bill. they half to get a deal with -- have to get a deal with democrats on spending levels, nondefense spending and defense spending. there are a bunch of military hawks that want to raise the dollar forel without
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dollar increases in domestic discretionary spending, which democrats are demanding. yes, republican said given themselves some space to pass the tax bill. david: one of the ways that spending gets mixed up is through senator collins. you wrote a great piece where she thinks she has a deal and she will vote with the tax overhaul provided she gets some spending and the health care area. how could you for taxes unless he knows she gets that money on the spending side? sahil: she voted for the senate bill, she says believing she had a deal to include two health care bills and whatever particular vehicle goes through this year. that will stabilize the obamacare markets after the repeal of the individual mandate. the problem is the deal only seems to be operable in the senate. the senate majority leader made a commitment to her. it probably can pass the senate
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for there is a vindication it can pass the house. speaker ryan says openly he was not party to this deal and he is not signing off on it. it remains an open question. there is a lot of opposition to those bills in the house and the white house. i asked the white house yesterday and they did not commit the pushing for this. by the end of the year for senator collins, it was her vote in question for the final tax package when it comes back from conference committee. shery: when it comes to getting votes that will depend a lot on what happens at this date and local tax the reduction's. -- tax d edictions. there are some republican members who want to include income taxes. most notably california house republicans. votedt three of them have for the house bill. that me 11 house republicans voted for the house bill, for they want an expansion in the
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white house seems to be open to it. gary cohn suggested on this network this morning and republican leaders in the house and senate are working on that. it looks like there could be a state and local income tax exemption added to the bill. shery: great to have you, thank you. our national political reporter on capitol hill. david: let's get a check of were markets stand with julie hyman with the latest. julie: we have got stocks rally in the wake of this morning's jobs report. major averages of higher. the nasdaq and the leadership position as we see strength and large-cap technology. it is the dow and s&p trading at records on the closing basis. the have not touched intraday highs. in one of the subgroups benefiting from the report if the temporary employment and staffing companies. they tend to move in tandem with the various job numbers. manpower robert and trueblue are all trading higher.
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just a refresher. payroll is up 228,000 for november, better than estimated after a couple of disruptions in the prior months due to hurricane effects. we have been focusing on the average hourly earnings. they rose 2.5% year-over-year, less than had been estimated. if you look at the economic data it hasas of late, been surprising by a higher margin. that is the blue line, the economics of price index for the united states. in looks at how economic data has been doing relative to estimates. after underperforming estimates in the summer and going in the fall, it is catching back up with the s&p 500. interesting because they tend to move more together. there was a big gap. and now the numbers are starting to perform a little bit better relative to expectations. nonperforming relative to expectations are the laggards. we have ups down.
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not by much for the company did say in a tweet it was seeing struggle at his delivery centers because of the big influx of orders for the holidays. we have pall corporation falling. that has to do with an analyst call being cut the underweight from sector wait over keybank. they are setting valuations and fundamentals. cooper company in the industrials. after mountingwn concerns, including a rise in andand market share gains it overshadowed its fourth-quarter which was in line with estimates. coca-cola as well falling. it looks like this is linked to an analyst note. coca-cola remains a show me story and its growth targets are a little too aggressive. david: thanks so much, julie. shery: settling this taking points.
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the republican tax bill is heading to conference. we talk with congressman ryan costello of pennsylvania about what should make it into the final bill. this is bloomberg. ♪
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♪ shery: this is bloomberg markets: balance of power. david: let's check it on first word news. which ar -- we turn to mark crumpton. mark: arizona officials are trying to figure out with a hold a special election to take a midterm replacement republican congressman trent franks. he announced he will resign effective january 1 after revealing he discussed surrogate motherhood with female staffers. the vacancy is occurring more than six months before the next general election, arizona law requires the governor to
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schedule a special primary election and a special general election. democrats are continued that's considering a plan that would limit the influence of so-called superdelegates at the next presidential primary. most the new rules, superdelegates would have to tighter votes on the convention's first ballot. the compromise comes after allegations by supporters of vermont senator bernie sanders during the 2016 primaries the system was rigged. the legal battle over president trump's travel been resumed today in virginia. administration attorneys will ask a federal appeals panel to uphold the september 24 proclamation that restricted travel to the u.s. from six mostly muslim nations and blocked entry entirely from syria and north korea. the supreme court ruled monday the latest restrictions will remain in full effect of the appeals process plays out. u.k. labour party leader jeremy corbyn says more clarity is
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needed concerning the announced breakthrough in brexit negotiations. he told reporters in geneva while progress may have been made, the brexit referendum was in 2016. agreement should have been reached a long time ago. is to determination maintain a trade relationship ush europe which will give access to a great many jobs of those sent the channel. will maintain those jobs. nobody voted in the referendum to lose their job. mark: today's announced breakthrough let's talk move on from the initial divorce terms to the crystal subject of written's future -- britain's future relations with a block. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. david: the house and senate
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conferees are getting to work in reconciling the different versions of tax overhaul. the administration said it supports allowing deductions for either real estate or state and local taxes up to $10,000. laid out his views in an interview on bloomberg earlier today. >> the house is concerned about their salt members, and about 70 salt members of the house. we are concerned about them. no one really wants tax increases here. what they are trying to do is say maybe we should expand the $10,000 deduction, not to just include real estate taxes but also include income taxes. the white house is fine with that. david: we welcome a republican member of the house committee on energy and commerce, representative ryan costello of pennsylvania. he joins us from pennsylvania. good to have you. rep. costello: good to be with you. david: we want your best view on what we will end up with. let's start with state and local tax provisions. is this a done deal at this
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point? basically it will be a $10,000 cap for either real estate taxes or state income taxes? rep. costello: a combination of the two. i think that is where ". david: how do you pay for that? that will cost some money. rep. costello: if you look at the house plan, the house plan is paid for. if you look at the senate plan, they are looking at repealing the individual mandate. when you do that, that opens up even more revenue. i think that is how you do it. shery: you are ok with repealing the individual mandate, although it could be stabilizing some sectors the health industry? rep. costello: 80% of those who actually pay the penalty or the tax make less than $50,000 a year. , in the grand scheme the individual mandate operates as a tax on lower income americans. david: you were in favor of
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repealing the individual mandate the matter what it does to the health insurance market/ -- market? rep. costello: the way to stabilize the marketplace, more than anything else is to return csr's. has an issue i have taken issue with with president trump. 'i would like to see csrs returned. there is more we can do in creating flex ability in each state and how they operate the insurance marketplace, but the individual mandate is not the difference between stabilizing the marketplace or not. back to your salt question, it is critical. you mentioned there are 70 districts or 70 members who are really looking very closely and making sure we do have the combination of state income tax the ability -- to deduct that in relation to tax reform. what you do is you marry that with the lower tax rates with a
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higher income thresholds for this tax rates. i think the overwhelming geordie of hard-working taxpayers and families will see a tax cut out of this, along with the projected economic growth on the business side of the plan. i do believe we will get to a place out of the contrary -- the process going right now where most of risk and say this is a good plan for our country and a good plan for growth. shery: we have a congressman from new jersey yesterday. they wanted a full inclusion of the salt deductions. had he looked at their proposal or would you know if those are gaining momentum? rep. costello: at this point in time, from a momentum perspective, this is was within the contrar -- conferee and the house and senate. might goal is to see a tax plan
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that will facilitate more growth, create more jobs, with wages and at the same time provide a tax cut for middle income families. i believe the plan that comes out of the conference process will do that. the extent to which we are able to make sure, particularly in the northeast in california as well, those who are paying high state and local taxes, property taxes, income taxes have the ability to the duct -- deduct. that is something i take seriously and is critical to me ultimately supporting a bill. i have not looked at with josh and leonard -- i would have to speak with them more. i can't speak with specificity as to what they said earlier today. david: everybody is for paying -- for growth. everybody is for growth. what about the deficit? are you concerned about the deficit, either from the tax
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plan for the infrastructure plan? are your constituents worried about how much money we are borrowing and arguably putting on the backs of our children and grandchildren? rep. costello: certainly. i think everybody should be concerned about deficit spending, which we have done for quite some time. as well as the debt which is now $20 trillion. i think -- this is my third year serving, every single year i think have tacked another $1 trillion onto the debt. this is projected. i would take issue with some of the scoring. this is projected at $1.2 trillion over 10 years. that assumes lower economic growth that i think will happen. i believe larry kudlow earlier on your station was speaking about the fact that if you look created and00 jobs the 3.3% gdp growth last quarter and look at what companies are looking to do with that capital, you can see some substantial
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investment in the year to come which will lift wages, tighten the labor market, which will require company security for employees. that natural weightlifting will be a net positive -- wage listing will be a net positive. that is how you create growth in this country. if you look at the growth projections relative to the tax plan, i would take issue with what the cbo did. the underestimate growth. you are talking about over a 10-year projection. if we wanted to talk about the debt, i would look back at the government's spending spree that went on over the past 10 years. give you look forward, i'm optimistic for the future of the country. shery: that is all the time we have now but thank you for joining us. congressman ryan costello, republican of pennsylvania. in overnight breakthrough divorce talks between the u.k. in the eu after a month of haggling. with theresa may's concessions
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will mean going forward. next.l talk about that this is bloomberg. ♪
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♪ david: this is bloomberg markets: balance of power. shery: now comes the hard part. the 45 billion deal was signed before dawn in brussels, finally clearing the way for a trade talks to begin between the u.k. in europe. the negotiations were mostly concessions on the part of may. what this means for the vote ahead. we are joined with jacob senior fellow at the peterson institute for economics in washington. that he for joining us. can we say that this round was completely won by the eu? yeah, this is a
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complete capitalization by the u.k. government on pretty much all the main eu demands. atimately the divorce bill the recommended to the eu wanted. if you look at details of the citizens rights, every eu citizen in the u.k. will now law for rights under eu the duration of their lifetime, even if they remain in the u.k. in the northern irish issue. there, i think the real interesting thing is this agreement now is essentially making a soft brexit of full regulatory alignment for all the eu -- u.k. with the eu. the default option, meeting if there is no agreement on a future trade agreement, the outcome will be that the u.k. becomes a bit like norway. given that this is the eu's preferred end state, the eu has
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zero incentive to actually negotiate a new free trade agreement with the u.k. brexitspects for a soft has gone up dramatically with this agreement. david: this is such a soft brexit, i wonder if it is a brexit at all, except they don't get a seat at the table. they basically promised the republic of ireland there will be no border between republic of ireland and northern ireland. they promised the northern irish, because they are essential to theresa may's government there will be no border between northern ireland and the u.k. they're essentially will be no border between the u.k. portray papers is in the eu. can theresa may deliver this in her own party? jacob: there is no doubt this is what it means. this is a fake brexit in my opinion because it basically means the u.k. becomes a rule an option- taker,
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similar to norway. can theresa may deliver this within her party? i think that is highly unlikely, or may not be the case. what i think is the case is that this deal is very close to where the labour party is on many of these issues. i don't think it is any doubt this is a deal that theresa may can carry with relative ease through the british parliament. even if she loses the right wing of her own party. in that sense it is quite politically savvy of her, but it runs the risk ironically of having the same split in the conservative party going forward. shery: and theresa may is speaking about the impact on the economy and businesses. take a listen. millions of jobs that fit of jobs depend on the future trading relationship we will determine.
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i am optimistic about discussions ahead. in the meantime, reaching this agreement now ensures businesses will be of to make investment decisions based on an implementation period that offers welcome certainty. shery: what does a fake brexit me for these companies? -- mean for these companies? jacob: the status quo more or less will continue. certainly it will continue through the transition period which is currently, inked in to last until the end of 2020. in the event there is a trade agreement on the future relationship, that transition period could be extended. the key thing here is that the agreement on northern ireland -- whate default option happens is if there is no trade agreement, full regulatory alignment between all of the u.k. and the eu continues. the said, incentive-wise,
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eu has no incentive to strike a deal. nor does u.k. businesses because they prefer the status quo. shery: jacob, thank you for joining us. jacob kirkegaard, senior fellow at the peterson institute for international economics joining us from washington. david: it would be ironic if britain has gone through all of this and put a lot of this through this for a fake brexit. never mind. we are not really leaving. shery: with the eu leading negotiations. david: u.s. labor market maintained steady growth last month with congress on because of passing the tax-cut. we will speak with chris lu, former labor secretary secretary. this is bloomberg. ♪ is this a phone?
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choose by the gig or unlimited. and ask how to get a $200 prepaid card when you buy any new samsung device with xfinity mobile. a new kind of network designed to save you money. click, call or visit today. ♪ david: this is bloomberg markets: balance of power. shery: breaking news now. is expected to depart the trump white house. that's according to the
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washington post that says she was a driving force behind the trump administration's middle east policy. now she's planning to leave the white house. this comes amid a wave of departures. this following president trump's first year in office. the washington post makes it clear she is exiting on good terms with the president. she was not fired or reside in -- or resigned amid controversy. it is not unusual at the end of the first year of a term for people to leave. dina is well known the people in new york. very close with gary cohn. she has been commuting back and forth this whole time in washington and new york, to her daughters. she has been very active. you have seen her in a lot of shots of the president. she is right by his sight in a lot of international meetings. it will be good to have her back
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in new york. shery: given what a key role she played in the middle east policy of the white house, this will be really an important change. david: she is actually egyptian. she was raised in the united states but she is from egypt. let's get the headlines with first word news from mark crumpton. mark: united nations security council met today concerning president trump's decision to recognize jerusalem as the capital of israel. the council says the action violated international law. >> that stated by the secretary-general, united nations position is clear. jerusalem is the final -- for which a comprehensive, just and lasting solution must be achieved for negotiations between the -- speaking to the council of the link from jerusalem. eight states from the council requested emergency meeting.
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president trump said he plans to move u.s. embassy from tel aviv to jerusalem. the military says coordinate airstrikes killed five all qaeda operatives in yemen. central command said he airstrikes were conducted last month and the dead included prominent out qaeda leader -- al quada leader. the group has been exploding the chaos from yemen's war to expand across the region. president trump has signed a short-term continuing resolution to fund the federal government through december 22. lawmakers averted a government shutdown by passing the two week extension last night. and now face a deadline for deciding what to do about spending on defense and domestic programs. a group of democratic lawmakers sent a letter to white house senior adviser jared kushner inquiring if he's held discussions with foreigners on
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financing for a manhattan tower owned by the christian family. shneregislators -- ku family. they are concerned he could be seeking massive bailouts from foreign nationals. it has a $1.2 billion mortgage human february 2019. president trump approved an emergency declaration in california where wildfires have raised for most of the week. -- it orders federal response for efforts. the fires stretch for a couple of hundred miles from san diego to north of los angeles. the biggest fire has burned almost 104 miles in ventura county, destroying or than 400 buildings. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i mark crumpton. this is bloomberg. david: turning back now to the
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u.s. jobs report they came up this morning, payrolls increased by 228,000 in november. that was better than the estimate. the end of limit rate held at 4.1%, lower than nearly 17 years. wage growth -- here with his perspective is chris lu, former deputy secretary of labor and he joins us from seattle. welcome back to the program. what is your take on this job report? it was described as solid when it first came out. it is a good number of jobs added. on employment is low, but the wage growth is not coming at. chris: you are right. i would call this a solid report. it evens out a little bit of the ups and downs we have had over the last couple of months because of the hurricanes. it is better to look at this as a three-month average of 170,000 jobs created, which is consistent with what we had the rest of the year. although it is a little below the last couple of years, in particular 2016.
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the question is why wages have not gone up. whether we are taking sufficient action to create more jobs and grow wages. i don't believe the tax bill does that, but that is what we are left with right now. shery: i was going to get the tax reform. given the lackluster wage gains, will the tax cuts help in spending or consumers prefer to save money for a rainier day? chris: the problem is that it does not provide much relief to most consumers, which is what would drive the economy going forward. i'm concerned about the changes to the individual mandate in the affordable care act. is not only the wage growth coming out of the tax cut, but the increased health care costs for the lack of health care the 13 million people with having the end of the day. that's a look at recent history and the effect of tax cuts on wages. david: the republicans would say
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maybe we are not giving directly as much money into the pockets of consumers, but we are helping them because we are creating an environment where there will be more investment in the u.s. that will actually result in more jobs and better paying jobs. what do you say to that? chris: there are $2 trillion of money that you was corporations are sitting on right now. if they wanted to do that investment, if they wanted to create jobs and grow wages they could do that already. the recent history, whether it is the 2001 bush tax cut, the 2012 tax cut in kansas, it did not have much of a stimulative effect. when you look at how this tax cut is going, it is not providing much relief to the vast majority of americans. on top of that are the effects on health care, which will have a detrimental impact on average americans. with: combine the tax cuts a plant infrastructure bill that
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we are now hearings from the ministries and sources that the plan is coming out in january. how much will this help? chris: we have been here in and waiting for that bill from us the year. and set of blowing a $1.5 trillion hole in the national debt, i would have rather put it into infrastructure, which we know creates good paying manufacturing and construction jobs. this january artificial deadline, i'm skeptical about that. i wish the president had focused on infrastructure out of the box and that of health care and taxes. i think that would have a more important impact on job in this country. david: another vexing problem that was vexing when you were in charge of labor and that his participation rates. they have been coming down steadily since 1950 for prime aged males. what is the problem? chris: labor force for dissipation really has not
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moved. it is going in the wrong direction. it reflects the changing demographics of our workforce, which is becoming older. younger people are going to college. there are too many people sitting on the sidelines right now and is potentially one of the reasons you don't have wage growth. there is a lot of slack in the economy, even at 4.1% unemployment rate. it's why we have 6.1 open jobs in this country, including 1 million and health care, 400,000 manufacturing. jobs are there but the wages are not there. we still have a skills gap and why we need to continue job-training for more workers. 2 we are seeing -- shery: we're seeing gains in construction and manufacturing. which sector is the one we should keep a close eye on to see were the economy is headed? chris: what i'm concerned about is retailing.
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that was up 19,000 this month. in part because thanksgiving came a week earlier than it usually comes. a lot of the retail jobs were filled earlier than usual. overall in the past 12 months, 32,000 retailer jobs have been lost. i'm sitting in seattle, the home of amazon and online shopping. has a bigling number impact in rural areas where a lot of the old manufacturing jobs that were lost shifted to retail. that will have a particularly devastating impact in some of those areas. david: thank you for being back with us, chris lu former deputy secretary of labor from seattle. shery: the muslim world rallies and protests against president trump's decision to recognize jerusalem as israel's capital. we will get more insight into the tensions with an expert in middle east politics. this is bloomberg. ♪
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♪ david: this is bloomberg markets: balance of power. shery: it is time for the stock of the hour. this years of israeli drugmaker are popping higher and on pace for the best day in about three weeks. abigail doolittle is here to tell us why and the job cuts. abigail: it does seem to be the possibility of job cuts. there was a skewed this morning saying they could consider cutting as many as 10,000 jobs, in line with cost cuts investors $1.5xpecting between billion and $2 billion. the stock has been rising steadily throughout the day. the reason they need to have cost cuts, the turnaround is needed.
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first, look at the key drug. it is a ms drug. it is steadily declining between 2013 into next year. brandad been a label, a for them but he recently went generic. in. is really eating they have done a better job than some investors thought they would do in keeping patients. if this continues to slide it could be an issue. they recently brought on a new ceo, he is a specialty expert. next year in 2018, they are looking at less r&d. that brings down costs and any to bring up and fill up the pipeline. they will talk with the strategy of new drugs and building up the r&d. perhaps the real positive reaction for the stock. is down 57% over the year. the possibility of job cuts and a strong first start. shery: abigail doolittle, thank you. trump after president
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announced his decision to recognize jerusalem as the capital of israel there were cries of outrage, including the head of thomas -- hamas. the demonstrations have been milder than other occasions. we welcome summit was made a career studying the middle east, working on these issues on the planning staff of the state department and advising dan patrick moynihan. presidentsenior vice at the center for strategic and international studies where he runs the middle east program. he comes to us from the headquarters in washington. thank you for joining us today. for you at all surprised at the level of outrage and demonstration? some people were predicting a lot more of a reaction that we have seen so far. >> it feels in many ways the explosive piece of the palestine issue has gone away in the arab world and governments in populations feel they have more immediate things going on.
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i think there is a depth of feeling about the issue that we are making a mistake to this judge. people really do care. it is one of the fundamental injustices in the world and i think the longer term impact of this on the u.s. role in the world will take a great toll, even if the short-term impact have not been the explosions people fear. shery: does this reflect the state of fragmentation in the arab world? jon: there is a lot of fragmentation. will be softened the arab spring 's people and governments thought they had a huge number of immediate issues right at something big and theoretical and far away was not as important as getting food on the table, getting arrested relatives out of jail, things like that. there have been looks inward in the arab world. sometimes people use the palestine issue as a way to distract, but i think governments field have a hands full trying to deal with things at home. david: they have a thing to deal
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with in iran. how much of that is a factor for saudi arabia? saudi arabia may be moving closer to israel, and that reduces some of the tension with respect to this issue. jon: the saudi government is closer to israel, but they also feel issues like recognition are precisely the kinds of symbolic things the president gave to israel this week, are precisely the things you have to withhold to create a greater balance of power between the israelis and the palestinians. the saudi's feel very deeply they need to support the palestinian cause and justice for the palestinians. i do think the u.s. relationship to saudi arabia is going to take a hit. the trust between u.s. and saudi arabia will take a hit because of this move. americans might argue it does not matter if they like us are not. the reality is on a lot of issues, when you get away from
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immediate security issues, the saudi's will look for alternatives to the united states rather than building a deeper relationship with the united states. shery: the proxy war they are fighting in yemen does not seem to be going very well. it seems to have been lost by a prince. some say he is way over his head. what is your evaluation of this new leader in saudi arabia and what he represents for the promise with the u.s. and the rest of the middle east? jon: he is somebody he was very ambitious. he sees himself as a person of action. he thinks disruption serves a useful strategic goal and we haven't steering away from it too long. what we saw not only with yemen but with the saudi dispute with qatar on a large number of other issues, he feels the conventional wisdom does not get us where we need to go if we
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want to go are you to go. we have to be willing to risk disruption and willing to do surprising things. i think it is part of why the president and the conference cap -- crown prince get along. they feel everyone is too timid. if you want to make it all went, to have to break a few eggs. the prince is 32 and doesn't have a track record of success that makes people trust him as much as he might want. qatar. you mention how will the tensions over jerusalem play into their isolation story? jon: qatar supported hamas in gaza. many accuse of being a terrorist organization and supporting the west they government, the palestinian authority. as we have seen over the summer, qatar hasn't pushed out of the gaza strip.
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some other countries like saudi arabia and the united arab emirates have tried to fill in. the have worked with the egyptians. i think there is a larger game going on where qatar was using arab spring and through connections with the muslim brotherhood to try to gain regional influence and now we are seeing saudi arabia and the emirates try to push qatar back into the box. is a country of just 300,000 citizens. they should not be regional power and palestine is one of the places that will push them back. david: to close with a were question that requires a long answer to keep it brief. on the palestinians look around at the region, who is their best friend? is in turkey? jon: i don't think the palestinians -- i think they have largely given up. i think united states has a responsibility as a major power
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and has a moral responsibility to help the palestinians, but does not think it would get much from the united states. the europeans will not do much. a largely find themselves friendless, and one of the things they realize is the arab governments say nice things about the palestinians. when it comes to helping, they don't think they have been that helpful. david: it has been a long time. alterman fromhn washington. election december 12 in alabama could change the power -- the balance of power in the senate. we will have the latest. ♪
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♪ david: this is "bloomberg markets: balance of power." shery: the u.s. senate contest in alabama is shaping up as a last point in the war among republicans over the future of the party. is forcing them to consider whether they are better off electing roy moore, who has been
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accused of sexually assaulting a teenager, are a democrat. yesterday al franken, telegin accused of sexual harassment announced he would resign from congress. in his speech he called up both president trump and roy moore. franken: on where there is some irony in the fact i am leaving while a man who has bragged on tape about his history of sexual assault sits in the oval office, and a man who has repeatedly preyed on young girls campaigns for the senate with the full support of his party. shery: here with what is at stake in alabama is campaign reporter -- on the phone from birmingham. give us the just of where we are in the polls. : polling averages show roy
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moore up by about 2.3 percentage points. within the margin of error, but up from last month after the washington post accusations came out, which showed him down by as many as 6-8 points. he has definitely come back from where he was after the allegations first broke. david: you are seeing campaign ads and rallies. what are the issues in front of the voters? is it about these allegations of misconduct or are there other issues in the campaign? arit: it is almost as if we seeing two different elections going on. you go to a roy moore rally and the issues discussed our religious liberty, and whether those rights are under attack, and the republican establishment and how they are trying to take away the voice of alabama voters. at the rally on tuesday, we heard more about jeff flake and mitt romney been about doug
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jones. and doug jones is campaigning on kitchen table issues, they need to expand medicaid, the need to renew funding, and whether roy moore would be bad for business. whether businesses want to come to alabama and don't factories. there are completely different issues on both sides. shery: how republicans processing the fact that could get him in the senate? what happens then? arit: i think we're seeing different reactions. there are people like jeff flake who wrote a $100 check the doug jones. he is not going to be in the senate very soon and roy moore might be. we see mitch mcconnell going back and forth from he might be expelled two it is up for the voters of alabama to decide what happens, to them will be an ethics investigation if he is elected. i think republicans are sort of accepting the fact that the polls in alabama show moore very well could win.
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when voters were weighing these accusations and wondering if it would vote for him, now they are taking a step back as they realize this is very much -- roy moore is likely to be the next senator from alabama and join their conference. shery: that he so much, campaign reporter for bloomberg. sign up for the balance of power newsletter at get the latest on global politics in your inbox every day. morgan stanleyp, chief economist on taxes, the fed and more. that the 2:00 this afternoon new york time. this is bloomberg. ♪
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>> it's 2:00 p.m. in new york, 11:00 in san fransisco, and 7:00 p.m. in london. i'm scarlet fu. julia: and i'm julia chatterley. welcome to bloomberg markets. ♪
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scarlet: we are live at bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. one of the top list economists joining us for the hour. ellen zentner speaks to us on a --e range of top topics. and where does great growth stand? and british prime minister -- are reaching a deal after marathon negotiations. what it would mean for u.s. investors and the u.s. economy. have u.s. markets closing in two hours time. julie hyman has more on the markets. a goldilocks jobs report. >> it seems that way. you had the growth, the unemployment rate


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